The passage of a financial services bill in Ireland, which will create 3,000 jobs by 2025 and attract up to €20 billion ($24.2 billion) in global private capital per year, has been welcomed by the country's money management association.
The Investment Limited Partnerships (Amendment) Bill 2020 was passed in the Dail, the lower house of Ireland's parliament, on Wednesday.
The amended bill is expected to accelerate the growth of the Irish money management industry, with the potential now for firms to expand their private equity, infrastructure, renewables and real estate offerings in the country.
The Irish Funds Industry Association said in a news release that it expects the move to also have a positive effect on local employment and Ireland's position as a sustainable finance hub.
The association expects money managers from common-law countries and other territories, including the U.S., U.K., Hong Kong and Australia, to find the development particularly appealing, in part due to Ireland's importance as a global English-speaking gateway to the European Union post-Brexit.
"This is game-changing in terms of Ireland's global competitiveness and will enable and drive new business and opportunities, as well as retain business which has previously been lost overseas. It will help develop Ireland as a center for green financing and align us with EU policy goals in sustainable finance," said Pat Lardner, CEO at the IFIA, in the news release.
Ireland's position as a future funds hub has been highlighted by a number of organizations, including a recent report by PricewaterhouseCoopers forecasting growth of the country's asset and wealth management industry of up to 10.8% per year over the next five years. Assets are set to reach €5.25 trillion.
The bill must now be signed into law by the President Michael D. Higgins.